It is always possible to negotiate your credit with the bank. But nothing forces your bank to accept this renegotiation. In that case you can then try to purchase the loan from another establishment.
The renegotiation of a loan is an operation in which your bank will replace the current credit with a new one. If this change is made with another establishment, there is talk of “loan purchase”. In general, the better the relationship with your advisor, the more chances you have of a negotiation.
But negotiate about what?
We renegotiated the interest rate or the duration of the credit, which will have an effect on your monthly payments, decreasing or increasing.
Negotiate the interest rate
If you want to renegotiate the drop in your interest rate, because you consider that the evolution of the economic situation and financial markets drives the rates to fall and that you want to take advantage of this opportunity. But the initial contract cannot be modified without the agreement of both parties, and if certain establishments are going to accept a write-off, others reject it without acting against the law.
If the establishment refuses, you have two possibilities that you need to study carefully:
- Proceed with an advance payment, but this may incur a penalty, which will not necessarily be offset by the expected gain from the new interest rate on the credit you can make, possibly with another establishment
- Make the purchase of your credit by another establishment, but you will also have to regulate an early repayment penalty to your current bank.
Negotiate on your credit time
You may want to renegotiate your credit time. If this possibility is foreseen in your initial contract, the bank where you made the loan cannot object, but if not, it can refuse.
In fact, it is less the time of your credit than the monthly fee that will be modified, according to your contract it explicitly provides for a possibility to increase or decrease the monthly fee. or initial contract that will fix the overall effective interest rate, the new scale to amortize and the total cost of the credit calculated according to the scales and costs to be paid.
If a prior offer is not necessary, you have a two-day reflection period from the date of receipt of the written information transmitted by the bank to which the loan was made.